Here's What's Next For Zuckerberg's Libra
Currency is top of mind for everyone. We think you'll see all sorts of changes, accelerations, pauses, winners, losers as we all re-evaluate everything from Universal Basic Income to best stock tips. The actual form of currency will, no doubt, take new shape and form as well. Almost as if on cue, Facebook's Libra has re-entered the scene during the crisis.
Mark Zuckerberg's cryptocurrency project is taking a new, scaled-down approach as transactions increasingly take place online during the coronavirus pandemic. The Association around the venture said it now plans to offer stable coins backed by just one nation’s currency in addition to its coins backed by multiple currencies. That means some coins offered by the group would serve as the equivalent value of a U.S. dollar or a Euro, for example. The change comes after Facebook’s plans for libra were shot down by lawmakers around the world who worried about a company with a history of privacy scandals having control over their citizens’ resources.
The move represents a big change for libra, which Facebook originally pitched last year as an alternative global system that would make it easier to make digital payments no matter where in the world you are. The new proposed design for libra would make it more like standard digital payments services such as PayPal.
“I keep on thinking about all the people and small businesses that could benefit from the Libra Network already being operational — especially now during these times of unprecedented hardship,” tweeted David Marcus, Facebook executive who spearheaded the project and former PayPal president.
It’s still unclear, however, if the changes announced Thursday will be enough to sway regulators and policymakers in favor of the project. We will be tracking developments for our readers.